FIDIC standardized models have been the basis for international contracts specific to large-scale construction and installation works carried out mainly in the field of public investment. They have ...been a source of inspiration for national standard contracts which have gradually come to be used in the public works contracting process. With the appearance in 1959 of the first bilateral investment treaty, FIDIC investor protection clauses began to be harmonized with existing international investment treatment standards in the body of investment treaties, as any type of investment is based on a contract concluded on the basis of the pre-existence of a protection and promotion treaty.
Japanese contractors have even the most advanced and efficient technologies, such as robot and GPS assisted construction method, however not always succeeded on overseas projects and have ...historically faced significant contractual difficulties; one example being the reported disputes resolution through arbitration on an over 50-billion-yen mega highway contract in North Africa in August 2016. Understanding the conditions of contracts on international projects is vital, and it is a failure in this regard through misreading and/or misunderstanding that we believe may have significantly impacted Japanese contractor’s in the past. In this paper, we evaluate the relationships between of each of the FIDIC conditions of contract by applying Text-Mining techniques and Graph theory to develop a conditions network. By analysis of the resultant network we then identify the key and most affective contractual clauses and propose possible strategies for contract management and ideas for dispute resolution.
The aim of the article is to identify barriers creating impediments to efficient project completion that result mainly from erroneous interpretation of the rules for calculating the final value of ...construction works performed. Taking the selected case study of a road construction contract as an example, some factors complicating the shape of relations between the investor and the contractor on equal basis were shown. The analysis carried out and developed proposals will contribute to defining organizational conditions of efficient and effective management of investment process and will be useful for improving the legal provisions regulating obligations of investment process participants.
The tremendous economic challenges especially due by the persistence of the financial crisis and the continuous decline of public investments in the last years have increased the financial risks ...faced by construction companies, which make them very vulnerable. The financial weakness manifested by the lack of liquidity leads to delays in the project implementation, in penalties for delay and lost opportunities, with direct effect on the health status of projects and organizations. Infrastructure construction projects are mainly base on FIDIC Conditions of Contract amended through special conditions by employer. The paper examine the effect of conditions of contract relating to the financial relationship between the employer and the contractor and the influence that they have on the financial management exercised by contractor, in order to provide them a practical tool for decision-making.
Construction projects are characterized by risks and uncertainties mainly due to technical and economic complexity. Risk management is an important tool in making decisions involving the ...identification and reduction, avoidance or transfer risk and uncertainties consequences of events that occurs during project implementation. For this reason, the objective of the contract between the beneficiary and the contractor is the allocation of risk. The distribution of risk in contracts for the execution of construction works was and is an ongoing challenge faced by parties having a significant impact on the type of contract is used. On the one hand, the beneficiaries tend to transfer to the contractors as many of the project risks and uncertainties, on the other hand, the contractors look to exploit any weakness contract, so as to reduce their impact on the expected profit. One of the most important risks assumed by the contractor by signing the contract which is also increasingly common in the current economic situation is the reduced financial capacity to support the project. A purely legal or purely technical interpretation is not meant to describe the complexity of issues related to implementation of construction projects. For this reason the authors have adopted a multi-disciplinary approach, which includes the legal issues related to the nature of the contract, but also the financial and technical aspects of construction projects. The paper aims to analyze how special contract clauses can influence the implementation of construction projects and in particular the financial management of contractors. The authors propose a model for analyzing the impact of FIDIC contract conditions applied on a case study of five transport infrastructure projects.
Construction industry in Romania is under pressure to modernize in order to cope with the new demands of development and convergence with EU. Contractual procedures in construction have to become an ...integral part in this process of modernization. The article makes an introduction to the advantages of standard forms of contract and professional contract administration in construction and presents the current state-of-the art in the use of standard construction contracts in Romania. Some practical conclusions and recommendations are presented considering the need for further contract studies.
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